While website traffic and industry data have been positive, Macquarie is cautious about the medium-term.
Cash reserves are a concern and the broker is cautious about any lift attributable to fiscal stimulus, which is unlikely to be permanent.
The business is now expected to be profitable in FY20 compared with prior forecasts it would be loss-making – attributable to earlier assumptions of a three-month shutdown.
Macquarie retains a Neutral rating and raises the target to $1.09 from $0.98.
Target price is $1.09.Current Price is $1.14. Difference: ($0.05) – (brackets indicate current price is over target). If KMD meets the Macquarie target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).